Crunching Numbers: Comparing Installments for Brand New and Second-Hand Condos!

Prospective buyers are deeply concerned about whether there are discrepancies in installment plans when acquiring a brand new or a second-hand condo. To address this, PropertyScout has meticulously compiled essential information to present to you. Prepare for enlightening insights in our discussion ahead!

Pros: Buying a Brand-New Condo

• Newer unit condition.
• Beautiful, modern interior design.
• A chance to gain a complete 100% loan.
• Transfer and Mortgage fee reductions.
• Potential discounts and promotions from the project.
• Room Insurance available in case of damage, allowing for repairs and claims.

Pros: Buying a Second-Hand Condo

• Considerably cheaper than buying a condo unit brand new.
• Clear view of the surrounding atmosphere.
• Stronger chances of securing a prime location in comparison to brand new condos.
• You can move in right away.
• Construction materials used in second-hand condos often have higher quality due to lower material costs during the construction period. This enables developers to choose more premium materials.
• No need for additional remodeling (in case of built-in furniture)

The Differences between Brand New and Second Hand Condo Installments

In this regard, the difference is evident as, in most scenarios, opting for a second-hand condo results in lower installment payments compared to purchasing a brand new one. This is primarily because second-hand condos are generally priced around 10-30% lower than their brand new counterparts. However, it's crucial to consider other factors to assess whether it's a favorable deal, including location, interior design, condo project's initial price, common area fees, and more. PropertyScout has summarized the advantages and disadvantages of buying both brand new and second-hand condos to provide a clear picture as follows:

Brand New Control Installments

This installment plan for a ready-to-move-in condo is suitable for individuals who already have a lump sum of money and have the financial capability to apply for a bank loan. To be eligible, applicants should have a clean financial record without any history of defaults and meet the bank's specified income requirements. Typically, if the monthly income is around 15,000 Baht and there are no outstanding debts or credit card payments, there is a good chance of qualifying for the loan.

Benefits

There is no need to worry about the risk of the condo not being completed, but we may have to manage ourselves to ensure that we have the funds to make installment payments on time and have a higher chance of becoming a definite condo owner compared to the down payment installment method.

Drawbacks

For individuals who are just starting their careers and haven't accumulated savings from their income yet, this investment option may not be the most suitable choice.

Second Hand Condo Installments

When opting for installment plans for second-hand condos, buyers are purchasing from individuals other than the original developers. These condos may have been in use for 5 to 10 years, or even up to 20 years. Nevertheless, numerous second-hand condos are well-maintained, boast excellent locations, and are available at affordable prices.

Consequently, financing a second-hand condo becomes a feasible choice for many, particularly due to the lower prices compared to brand new condos and those with down payment installments. Potential buyers are usually interested in residing in these condos or using them as investment properties for rental purposes. This option is viewed as a way to generate passive income, making it appealing to individuals seeking such opportunities.

Benefits

With second-hand condos, you have the advantage of making clear location choices and assessing actual conditions, such as the room's state, surroundings, neighbors, and the condition of common areas, whether they are new or old. Additionally, transportation options are easily evaluated. Notably, prices for second-hand condos are generally 10% to 30% cheaper than brand new condos or condos with down payment installments.

Drawbacks

Considering second-hand condos, the room's condition is of utmost importance as they have likely been used for a considerable period, resulting in natural wear and tear. Renovation expenses might be necessary, and there is an inherent risk as the purchase is not directly from the original developer. Consequently, there is a possibility of encountering deception from previous owners or facing inflated pricing.

Furthermore, selling a second-hand condo in the future can be more challenging due to multiple prior transactions, and banks may only offer loans up to 90% of the assessed value. As a result, potential buyers often prefer condos that are not too old or opt for brand new ones to mitigate these concerns.

What do you say?

Now that you're well-informed about the installment options for brand new and second-hand condos, as well as their pros and cons, take the opportunity to assess and compare which payment plan aligns best with your preferences, financial capacity, and lifestyle. Keep in mind the clear distinctions between buying brand new and second-hand condos. It's essential to consider other factors too to arrive at a well-rounded decision that truly caters to your needs and preferences.

Whether you're looking for a second hand or brand new condo, feel free to check out our expansive selection of top-quality condos as well as other Properties in the links below!